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October 14, 2013

Saving Money with Usage Based Insurance

We at Kaplan Insurance are excited to introduce to our clients to a new type of auto insurance that promises to reduce the premiums paid by numerous motorists. We are always looking for ways to bring you the very best insurance at the lowest possible price. So, let’s look at a new concept: usage-based insurance (UBI). One good example is Snapshot by Progressive.

Just what is UBI, and how does it work? Most importantly, is it right for you?

Usage-based insurance relies on a data derived by a device that monitors your driving habits. Monitoring techniques may vary, but onboard devices commonly assesses tendencies toward rapid acceleration and hard cornering. It also makes use of GPS to assess where one drives and how far. Onboard devices that monitor driving habits are collectively known as “telematics.”

Perhaps the most widely-known of the new usage-based programs is Snapshot. The video feature in TV commercials has generated a lot of interest. You know, the 30-second spot in which a father and son are placidly rolling down the street when, suddenly, one “rate sucker” after another gloms onto their car, firmly attached to the windows by their lips! These individuals represent the “bad drivers” that have historically driven up the rates of the conscientious ones. In the commercial, once the Progressive Snapshot device is plugged into the car, the “rate suckers” rapidly drop off of the vehicle.

The message is clear: Snaphot can keep you from, in effect, subsidizing those with poor driving habits. A personal analysis of your good habits translates into reduced personalized rates.

Progressive’s Snapshot concept specifically relies on the company’s own proprietary device to take a “snapshot” of your driving habits. It easily plugs into a diagnostic port that is typically located beneath the steering column. This device tracks important variables like how often you slam on the brakes, how far you drive, and how often you drive between the hours of midnight and 4am.

Progressive offers a 30-day long “test drive” during which you can actually track your potential savings. There a variety of other details, so please contact us here at Kaplan Insurance for additional help. Whether you choose to immediately switch to Progressive or to take the 30-day “test drive” is up to you. Either way, the use of the device is free. With the 30-day test, you can go right online and track your usage data. You can also track potential savings.

We’re proud to now offer UBI, a form of auto insurance that affords our customers distinct control over their own rates. Kaplan Insurance is an authorized “Snapshot” agency.

The use of telematics to help to determine car insurance premiums is expected to rapidly increase. Some industry analysts project that 20-percent or more of policies will be usage-based within five years.

Don’t hesitate to contact us here at Kaplan Insurance to learn more about Snapshot and other UBI programs. If you wish, we’ll gladly review your policy and guide you to the best rates available for your personal situation.